Corporate Organizational Capabilities, Proactive Environmental Strategy and Financial Performance

Green R&D for eco-innovation and its impact on carbon emissions and firm performance

Though many firms still believe that passive environmental strategies are sufficient, it is pertinent that they move beyond this belief and take a proactive supply chain-wide environmental stance so as to create a sustainable environment. In this paper, we seek to extend current work within green supply chain management by considering multiple green supply chain capabilities and performance measures. We hypothesise the linkage between environmental orientation, green supply chain capabilities and performance by drawing upon stakeholder theory and natural resource-based view. More importantly, our study is the first to distinguish between product and process-related capabilities in the green supply chain area and study their direct and mediating role with respect to environmental and financial performance measures. Using survey data collected from 256 Chinese-based high-tech firms, we analyse several hypothesised relationships. Our results provide strong support for the significant role that green product design and green supply chain processes can play in improving firms’ environmental and financial performance. Interestingly, our results also suggest that green product design may not have a direct impact on financial performance.

PurposeAnchored on the natural resource-based view and stakeholder theories, this study aims to investigate the mediating roles of sustainable supply chain management and green radical product innovation (GRPI) in the link between sustainable entrepreneurial orientation (SEO) and sustainability performance.Design/methodology/approachThe comprehensive research model developed in this study is empirically tested by using data garnered from 248 managers of Ghanaian small and medium-sized enterprises. Partial least square structural equation modeling is applied as the methodological technique to test all the hypothesized relationships.FindingsResults of the study indicate that SEO has a direct significant positive impact on environmental performance and social performance but not financial performance. However, through sustainable supply chain management and GRPI (both mediating variables), SEO tends to have significant impact on all sustainability performance dimensions (environmental, financial and social performance).Originality/valueThis study offers fresh empirical evidence by developing a unified research model that validates the specific mediation role of sustainable supply chain management between SEO and green radical product innovation, as well as the mediating roles of both sustainable supply chain management and GRPI between SEO and sustainability performance dimensions.

PurposeDigital transformation is a foundational change in how firms operate and deliver value to customers by using digital technologies to create new business opportunities. The purpose of this study is to offer a conceptual framework by reorganizing the elements of digital transformation, including resources, technology, capabilities and performance, into a workable process and investigating how firms integrate these resources, build new capabilities and transform them into enhanced performance.Design/methodology/approachThis framework builds three blocks: resource integration, organizational capabilities and outcomes, exploring the impact of resource integration on outcomes through organizational capabilities. For resource integration, this study adopts a resource-based view (RBV) and service-dominant logic (SDL) to integrate organizational resources, including information technology (IT)-based resources, which play a role in moderating the effect of resource integration. Moreover, the author argues that firms’ capabilities have two levels: higher-order capabilities and lower-order capabilities, which will convert these resources through the capabilities into organizational performance.FindingsThis framework is built to understand the process of digital transformation and its antecedents for firms’ performance in business environments. Drawing on RBV, it provides a more holistic perspective that has been linked to resource integration, organizational capabilities and outcomes at the firm level. In this way, the theoretical basis for diminishing implicitness associated with the current perspective of digital transformation can be strengthened.Originality/valueThis paper offers a coherent discussion of digital transformation and explains the process of digital transformation, thus advancing prior work. The major contribution is connecting the process of digital transformation through which firms integrate resources, i.e. digital technologies and valuable, rare, inimitable and nonsubstitutable (VRIN) and nonVRIN resources as well, to build organizational dynamic capabilities based on RBV and SDL.

Despite the rising interest on the performance implications of environmental strategy, few studies have examined how such strategy helps build organizational capabilities. Taking the resource-based view (RBV), this study investigates the underlying mechanisms through which proactive environmental strategy develops organizational capabilities. The results of a survey of publicly listed companies in China reveal that proactive environmental strategy has a more positive influence on stakeholder integration capability than on innovation capability. Moreover, organizational learning plays a greater role in mediating the effect of proactive environmental strategy on innovation capability than on stakeholder integration capability, whereas cross-functional coordination plays a greater role in mediating its effect on stakeholder integration capability than on innovation capability. These findings provide important implications on organizational capability building via environmental strategy.

Green supply chain management (GSCM) has gained significant attention as companies in developing countries face growing pressure from regulators, consumers, and global value chains to adopt environmentally responsible practices. Yet empirical evidence on the relationship between specific GSCM activities and firm performance in developing country contexts remains inconsistent and sparse. This study addresses that gap by empirically examining the relationships between three GSCM dimensions green procurement, green manufacturing, and green distribution and three firm performance dimensions: environmental, economic, and operational. Using a cross-sectional survey of 312 manufacturing firms across India, Nigeria, China, and Ghana, a structural equation model (SEM) was estimated, grounded in Natural Resource-Based View (NRBV) and Stakeholder Theory. Confirmatory factor analysis (CFA) confirmed strong reliability (Cronbach's α = 0.86), composite reliability (CR = 0.88), and convergent validity (AVE = 0.61). Path analysis reveals that green manufacturing exerts the strongest positive effect on environmental performance (β = 0.412, p < 0.001), while green procurement significantly influences both environmental (β = 0.341) and economic performance (β = 0.198). Green distribution notably drives operational performance (β = 0.318, p < 0.001). Environmental performance further mediates the relationship between GSCM practices and economic and operational outcomes, suggesting a virtuous cycle between ecological responsibility and business competitiveness. Country-level moderation analysis indicates that institutional quality and regulatory stringency amplify the performance benefits of GSCM adoption, highlighting the critical role of governance in sustainability transitions within emerging markets. These findings advance the GSCM literature by providing empirical evidence from economies at varying development stages, and offer actionable guidance for managers and policymakers seeking to leverage green practices as a source of sustainable competitive advantage.

Coupling the ecological modernization theory with the natural resource‐based view of firms, we investigate the impact of Industry 4.0 (I4.0) technologies and proactive environmental strategies on firms' environmental performance. Additionally, we assess the mediating effects of circular economy practices and green innovation on the relationship between Industry 4.0 technologies, proactive environmental strategies, and environmental performance. Using a cross‐sectional design, we collected data from the managers and senior executives of 282 apparel manufacturing firms in Bangladesh. Our SEM findings showed that I4.0 technologies and proactive environmental strategies have a positive impact on environmental performance and that circular economy practices and green innovation mediate these relationships. Complementing these findings, our fsQCA results reveal multiple alternative configurations of I4.0 technologies, proactive environmental strategies, circular economy practices, and green innovation that are sufficient for achieving high environmental performance, highlighting causal asymmetry and equifinality. Our findings refine ecological modernization theory and the natural resource‐based view by showing that environmental performance is not the result of isolated drivers, but rather of specific combinations of technological, strategic, and innovation‐oriented capabilities.

Purpose– The purpose of this study is to draw on several perspectives rarely used in reverse logistics (RL) research – such as sustainable development, the natural resource-based view and green innovation – to examine the relationship between RL innovation and environmental and economic performance while incorporating institutional theory to verify how institutional pressures moderate these relationships.Design/methodology/approach– A questionnaire survey is used to investigate Taiwan's electrical, electronic and information industries, as well as maintenance and retail stores selling computers, communications and consumer electronics. First, a hierarchical regression analysis is used. Next, moderating relationships are examined along with the related regulatory, competitor and customer pressures.Findings– The results indicate that RL innovation is positively associated with environmental and economic performance. Moreover, three institutional pressures positively moderated the relationships between RL innovation and environmental performance. However, investment in greater RL innovation under higher-level institutional pressures did not always enhance economic performance.Research limitations/implications– Reverse logistics innovation comprises five components, one of which is cross-functional integration, the process of obtaining information from marketing, production and logistics managers about how their firms created the marketing-operations interface to better handle RL. However, we obtained RL innovation information only from individual respondents. In addition, this study focuses on the economic and environmental aspects of RL activities. Future studies should apply the RL perspective on social sustainability to probe RL issues from sustainability's environmental, social and economic points of views.Practical implications– Contrary to the conventional wisdom that RL imposes costs, reduces productivity and curbs competitiveness, this study finds that RL innovation can enrich environmental and economic performances, indicating that firms with more innovative RL capabilities yield more sustainable outcomes for environmental protection, social responsibility and economic performance.Originality/value– This study contributes to the RL literature by applying multiple perspectives – including sustainable development, the natural resource-based view and green innovation – to explore the relationship between RL innovation and performance while using institutional theory to probe the moderating effects of institutional pressures on RL innovation and performance.

Our study of 134 North American and European ski resorts examines the influence of externally focused organizational capabilities on the generation of proactive environmental strategies under contingent effects of uncertainty in the general business environment. We find that the capabilities of strategic proactivity and continuous innovation are associated with proactive environmental strategies. Managerial perceptions of uncertainty in the general business environment moderate the deployment of the capability of continuous innovation at all levels of uncertainty and stakeholder engagement at low and average levels of uncertainty. The study contributes to the resource‐based view (RBV) by illuminating an important contingency under which capabilities are likely to be deployed to generate a proactive corporate strategy. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.

Effects of proactive environmental strategy on environmental performance: Mediation and moderation analyses

PurposeGreen sustainability has become a critical challenge for businesses to execute green supply chain management (GSCM). Most of the literature on GSCM emphasizes regulations as drivers and few pieces of research are conducted from an internal organizational culture view. This study aims to use the cultural perspective of market orientation (MO) and draws on both the natural resource-based view (NRBV) and dynamic capability view (DCV) to explore the relationships among green market orientation (GMO), GSCM capability and organizational performance.Design/methodology/approachA total of 1,000 survey questionnaires were distributed to the Taiwanese electronics industry and 207 valid questionnaires were collected. Data was analyzed using structural equation modeling.FindingsThe results show that GMOs have a significant positive impact on GSCM capability, environmental performance and economic performance. Moreover, GSCM capability is positively related to environmental and economic performance. The results also show that GMOs have a significant indirect influence on environmental performance and economic performance through GSCM capability.Practical implicationsThe findings of this study suggest how Taiwan’s electrical and electronic manufacturers, while faced with pressure from competitors, customers and regulations (i.e. waste electrical and electronic equipment directive, Restriction of Hazardous Substances Directive and energy-using products directives), should efficiently and effectively implement GMO and enhance GSCM capability to improve organizational performance.Originality/valueThis study fills up the gap between MO and performance indistinct relationships. It has also integrated two perspectives, namely, NRBV and DCV, to explain GSCM capability as a mediator between GMO and organizational performance relationship and to examine the relationships among GMO, GSCM capability and organizational performance.

Like many different and relevant sectors, the leather industry is currently facing a major environmental issue that may affect the competitiveness of all the stakeholders across the value chain. Drawing the conceptual model on the natural resource-based view (NRBV), this study seeks to examine the mediating role of individual green values (IGV) between green transformational leadership (GFTL) and environmental performance (EP). Furthermore, government regulations are used as a moderator concerning the relationship between GTFL and EP. An online survey was randomly distributed to Pakistan's leather industry employees to test the hypothesis by collecting data from 205 respondents. Partial Least Square Structural Equation Modeling (PLS-SEM) has been used to analyze data. The results demonstrate that green transformational leadership (GTFL) positively affects EP. Moreover, this study also reveals that GTFL significantly contributes to developing the IGV that consequently affects EP. Thus, the current study provides a significant sequential GTFL, IGV and EP path. However, surprisingly, the results show that government regulations do not moderate the relationship between GTFL and IGV. This study significantly contributes to the theory and stakeholders and leaders in a vast variety of manufacturing industries. It suggests that all organizations should adopt GTFL principles that encourage employees to engage in environmentally friendly activities by developing green values at the individual level to enhance EP. With this regard, GTLF, IGV, and government regulations may thus play a vital role for organizations and industry for better EP and competitiveness.

Pulp and paper companies are characterized by high‐energy consumption and high‐emission in production, placing a heavy burden on the environment. Exploring ways to improve their environmental performance is urgently needed. External coercive pressure from environmental law and internal proactive environmental strategy both enable companies to perform better, but little is known about the difference between them. To close this knowledge gap, our analysis is conducted on a case company in pulp and paper industry to compare the differential impacts of the New Environmental Protection Law of China and the proactive environmental strategy on its environmental performance. In addition, accurately evaluating the environmental performance of pulp and paper companies is essential while research on this topic is scant. Therefore, a novel environmental performance evaluation system for pulp and paper companies (EPESPP) is constructed, including not only internal but also external evaluation indexes based on news reports of various media measured by SNOWNLP sentiment analysis. According to the system, the environmental performance of the case company from 2010 to 2018 is evaluated by the entropy‐weight‐based catastrophe progression method (EWCPM). The results of our case study show that the implementation of a proactive environmental strategy is more conducive to comprehensively improving corporate environmental performance. In other words, the driving effect of the New Environmental Protection Law is not as strong as that of the proactive environmental strategy.

This article aims to explore the relationship amongst corporate environmental consciousness, green procurement, environment performance and competitive advantage. This study emphasizes green procurement as the vital position of supply chains and the trigger of operating activities. Both on-site questionnaires and mail questionnaires are implemented in Taiwan’s manufacturing industry. The results of structural equation model (SEM) indicate that corporate environmental consciousness positively affects green procurement and environmental performance and competitive advantage. The findings also suggest that corporate environmental consciousness affect environmental performance not only by a direct way, but also by an indirect way via green procurement. Specifically, corporate environmental consciousness promotes the environmental performance through green procurement, and environmental performance further boosts corporate competitive advantage. Therefore, the manufacturing industry in Taiwan ought to cultivate corporate environmental consciousness and well manage green procurement to achieve environmental performance and enhance their competitive advantages.

In an era of growing environmental challenges, the role of banks in promoting sustainability is critical. This study examines how Corporate Social Responsibility (CSR), green finance, and green innovation influence the environmental performance of Indian banks. Guided by legitimacy theory and the natural resource-based view, survey data from 379 bank employees were analysed using structural equation modelling. The results reveal that robust CSR initiatives, effective green finance practices, and innovative green strategies significantly enhance banks’ environmental performance. These findings contribute to theoretical understanding and offer practical insights for improving sustainability in the banking sector. The study recommends that banks in emerging economies strengthen internal resources by investing in CSR, adopting green finance, and fostering green innovation to boost environmental performance. Such efforts align with global sustainability goals, positioning banks as key players in environmentalprotection and responsible finance.